The European Union is considering the implementation of a new carbon policy, the Carbon Border Adjustment Mechanism (CBAM), that could profoundly impact the global import/export market of Steel. Please analyse the likely effects of this policy on the

1) Steel industry in China in terms of supply, demand and export 2) Steel and construction industry in the UK. 3) Chinese economy in terms of GDP, unemployment and inflation by considering the impact of steel industry in the supply chain.